Greek ETF Is Thursday’s Risk Trade

By Brendan Conway

Greek stocks are surging Thursday as traders bet on an investor-friendly outcome from this weekend’s elections. And the battered Global X Greece 20 ETF (GREK) is, for once, catching a nice bid. It has surged nearly 11% on the session.

Trading volume in this relatively little-used exchange-traded fund is well above average, with 32,000 shares changing hand less than halfway through the session, according to FactSet Research Systems.

Investors hold just $3.7 million in assets in this fund, which Morningstar warned late last year “is suitable as a small satellite holding, and at this time, it is probably more suitable as a trading vehicle.” After today’s rise, the ETF is still down 23% for 2012.

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Chris Dieterich has covered the U.S. stock market for The Wall Street Journal and Dow Jones Newswires. He is a graduate of Regis University and the Missouri School of Journalism.